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Bill

SB 2024

AN ACT to provide an appropriation for defraying the expenses of the department of environmental quality; and to amend and reenact section 23.1-13-16 of the North Dakota Century Code, relating to inspection fees.

69th Legislative Assembly (2025-26)

SB 2024 shifts motor fuel inspection fee deposits from the general fund to the DEQ operating fund, funding the state fuel inspection program, with DEQ appropriations for 2025-27.

Filed with Secretary Of State 04/22
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Bill Summary · SB 2024

Summary — SB 2024 (North Dakota)

Status: Enacted. Signed by Governor (June 2025); effective September 1, 2025.
Introduced: March 6, 2025. Sponsor: Appropriations Committee.

Purpose

Provides the Department of Environmental Quality (DEQ) appropriation for the 2025–27 biennium and amends ND Century Code §23.1‑13‑16 to change the deposit destination for an existing motor fuel inspection fee to the DEQ operating fund (to support the state fuel inspection program).

Key fiscal provisions (biennium July 1, 2025 – June 30, 2027)

  • Total appropriation (all funds): $132,015,373 (base + enhancements).
    • Base level: $92,425,480; Enhancements: $39,589,893.
  • General fund support: $18,875,736 (total general fund after enhancements).
  • Less other funds: $113,139,637.
  • Full‑time equivalent positions: increases from 173.00 to 175.00 (+2.00 FTE).

Line‑item highlights (total appropriation):
- Salaries and wages: $43,235,238
- New & vacant FTE pool: $2,290,870 (subject to transfer restrictions)
- Operating expenses: $21,887,206
- Capital assets: $4,663,600
- Grants: $59,938,459

One‑time / targeted funding (other funds: $5,438,386)

  • Move to new chemistry laboratory: $1,500,000
  • New chemistry lab capital assets: $1,375,000
  • New chemistry lab operating expenses: $700,186
  • Emerging contaminants program equipment: $943,200
  • Petroleum tank database: $700,000
  • State fuel inspection program capital assets: $215,000
  • Water & wastewater operator certification program: $5,000

Agencies must report use of one‑time items to the appropriations committees for the 2027–29 base budget process.

Changes to inspection fee statute (NDCC §23.1‑13‑16)

  • Continues existing inspection fee: one‑fortieth of one cent per gallon (0.025 cents per gallon, i.e., $0.00025/gallon) on gasoline, kerosene, tractor fuel, heating oil, and diesel sold/used in‑state (exclusions remain for out‑of‑state sales and certain packaged sales).
  • Administration: fee paid with monthly report; tax commissioner forwards collections monthly.
  • Deposit change: funds are to be deposited in the DEQ operating fund (previous language placed proceeds in the general fund).
  • Use: funds must be used, subject to legislative appropriation, for the state fuel inspection program.
  • Reporting: tax commissioner to make available an annual dealer‑level report of gallons subject to the fee.

Other specified fund allocations

  • Environment and rangeland protection fund: $250,000 included in other funds (includes $50,000 grant to the ND Stockmen’s Association Environmental Services Program).
  • Petroleum Tank Release Compensation Fund: $1,827,025 for petroleum tank release program expenses.
  • Strategic Investment & Improvements Fund: $3,575,186 for lab move and chemistry lab operations/equipment.

Who is affected / likely impact

  • Department of Environmental Quality: increased operating, capital, grant resources and +2 FTE; funding for lab relocation, emerging contaminants, petroleum tank programs, and fuel inspection capital needs.
  • Motor vehicle fuel and special fuels dealers: continue to remit the inspection fee (no rate increase); fee revenue will now support DEQ’s fuel inspection program directly.
  • Tax Commissioner: continues collection and reporting duties; will forward receipts to DEQ operating fund.
  • State budget: small ongoing revenue shift from general fund to DEQ operating fund (amount depends on statewide gallons sold), plus increased general fund appropriation overall for DEQ in this biennium.

Procedural / reporting notes

  • New and vacant FTE pool funds cannot be spent directly by DEQ; transfers to salaries require OMB request per HB 1015 guidelines.
  • One‑time items must be reported to the 70th Legislative Assembly’s appropriations committees for base‑budget consideration.

Compiled from official sources — confirm details with the bill’s official record.

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